Heat pump vs wood burner running costs in NZ: what EECA says, when free firewood changes the maths, and the non-cost factors that tip the decision.
For most NZ homes a heat pump costs less to run than a wood burner using bought firewood, and EECA lists heat pumps as the lowest-cost heating option. Wood is cheaper than gas but dearer than a heat pump. Free or very cheap firewood can change the result, and a wood burner works in a power cut.
Heat pump vs wood burner running costs is one of the most common questions before a winter heating upgrade, and the starting point is clear: EECA, the government energy efficiency agency, describes heat pumps as the lowest cost option for home heating.
The result still depends on where your firewood comes from and how you use the home, so here is what the official figures say, where wood can win and the practical factors that have nothing to do with money.
EECA's guidance is that wood fires and pellet burners are typically cheaper to run than gas heating, but more expensive than heat pumps. Its comparison for an average household is that running a heat pump costs $122 less a year than piped gas heating and $352 less a year than bottled LPG heating, excluding daily gas connection charges. EECA does not publish an equivalent dollar figure for wood.
EECA's heat pump page explains why. A heat pump can deliver about three to five times as much heat as a gas heater for the same input energy, and EECA describes it as the lowest cost option for home heating, at around a third of the cost of gas heating. It puts the average installed cost at around $4,400 and the lifespan at about 15 years, and notes the unit must be installed by a licensed electrician.
Firewood price is the single biggest variable. A household that has a genuinely free or very cheap supply, such as its own trees or a reliable source of offcuts, can spend far less on fuel than a household buying firewood every winter. That is the main scenario in which a wood burner can beat a heat pump on running cost alone.
There is no reliable national figure for wood burner running cost, because fuel price, moisture content, burner efficiency and how much you heat all vary. Be cautious about any single dollar figure for wood heating unless it is based on your own firewood price. When you compare, include the time and storage space that firewood takes, and the cost of chimney and flue maintenance.
Money is only part of the decision. These practical differences often decide it:
In some areas, yes. Environment Canterbury says that under the Canterbury Air Regional Plan, low-emission burners can be used for a limited time after installation, 20 years in places such as Christchurch, after which they become non-compliant, and that owners wanting to keep burning wood need an approved ultra-low emission burner. You can check a burner's status with Environment Canterbury's solid fuel burner database, and other regions have their own rules, so check with your regional or district council before you buy.
On funding, EECA's official information response says it stopped accepting new applications for wood burner installs under Warmer Kiwi Homes on 9 January 2026, after research into the health effects of indoor combustion. Heat pumps remain funded. Check the programme's current rules with EECA before you apply.
Because the unit must go in through a licensed electrician, ask for the installer's registration, a written quote that names the model and capacity, and what is included for pipework, electrical work and making good. Size matters: a unit that is too small works hard and costs more to run, and one that is too large cycles on and off.
TopChoice checks each business in its Top 5 heat pump installers lists against the NZ Companies Office and NZBN register, Google Business Profile evidence, relevant trade registers and reviews, and excludes lead-generation sites and unverified operators, so you can compare quotes from verified local installers.
See our independently researched Top 5 Heat Pump Installers in Auckland (East).
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For most homes buying firewood at market rates, EECA's guidance places heat pumps as cheaper to run than wood. A household with free or very cheap firewood may come out ahead with wood, and there is no single verified national figure for wood running cost.
EECA stopped accepting new wood burner install applications under Warmer Kiwi Homes on 9 January 2026, following research into the health effects of indoor combustion. Check the programme's current criteria with EECA, as funding rules change.
Environment Canterbury says you need an approved low-emission or ultra-low emission burner, depending on your area, and that burners have a limited compliant life. Check Environment Canterbury's rules and get a building consent before installing.
No. A heat pump needs electricity to run, so it stops in an outage. A wood burner keeps working regardless of the power, which is a genuine advantage in areas prone to outages.
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